When most companies think big, they mean opening a new office or launching a product line. When Elon Musk thinks big, he apparently means launching a million satellites to build datacenters in space. And now the Federal Communications Commission wants to hear more about it.

A Civilization-Level Ambition

FCC Chair Brendan Carr posted on X Wednesday sharing screenshots of a public notice from the agency inviting SpaceX to offer comments on Musk's orbital datacenter goals. Carr noted that the proposed system "would serve as a first step towards becoming a Kardashev II-level civilization," among other applications. For context, a Kardashev II civilization is one that can harness the entire energy output of its star, so we're talking serious science fiction territory here.

According to the notice, SpaceX has filed to operate a system of up to 1 million Non-Geostationary Satellites positioned between 500 and 2000 kilometers above Earth. The proposed system would primarily rely on optical intersatellite links that could connect with other satellites in the network, the FCC explained. These satellites could also link up with SpaceX's existing first and second-generation Starlink systems.

Requesting Regulatory Flexibility

Here's where it gets interesting from a regulatory standpoint. SpaceX isn't just asking permission—it's asking for a bunch of rule exceptions too. The company has requested waivers of several FCC sections that normally govern satellite operations.

First up, SpaceX wants waivers of FCC Sections 25.156(d) and 25.157, which control processing timelines and application procedures. Basically, the company wants to submit its application outside the normal processing schedule.

SpaceX also seeks a waiver of Section 25.164, which typically requires companies to launch a specific number of satellites within predetermined timelines and hit operational milestones or risk losing their license. This waiver would give SpaceX considerably more breathing room on deployment schedules.

Then there's Section 25.165, which requires companies to file surety bonds worth millions of dollars with the agency in case they fail to meet their obligations. SpaceX would like to skip that too.

Finally, the company wants to waive parts of Section 25.114(a)(1), specifically the Schedule S requirement that's normally mandatory for all space filings. According to the FCC, Schedule S "collects most technical and operational information relevant to the space station." SpaceX requested this waiver "to the extent necessary," particularly regarding channel plans for licensed beams, uplink and downlink beams, command beams, and orbital plane configurations.

The Bigger Picture

This news arrives on the heels of a major development: Musk's artificial intelligence startup xAI recently merged with SpaceX, creating a combined entity valued at over $1.25 trillion. SpaceX alone is valued at roughly $1 trillion, with xAI contributing approximately $250 billion to the total.

The SpaceX-xAI merger has naturally sparked speculation about whether Tesla Inc. (TSLA) might be next in line for consolidation. However, Gary Black of Future Fund LLC has publicly questioned what benefit such a merger would actually deliver to Tesla shareholders.